I’ve been working on a side project for one of the ranches I work with to install some form of renewable energy.  Due to the ranch’s location, we have opted to install a photovoltaic (PV) solar energy production system.  The ranch gets lots of sun every year, and less predictable wind.

Many of you with livestock are probably familiar with small scale PV systems that charge the batteries that electrify your cattle/livestock fences.  Some of you might also have small solar panels on metering and reporting systems for outlying wells, your RTK systems, or weather stations.  In my case, we are looking at a much larger system for the entire ranch including 3 homes and a large implementation and equipment barn.
Why Go to the Hassle?
Its simple; you don’t have to be a big environmentalist for a PV system to make sense on your farm or ranch.  All you need is a willingness to making long term investments that improve your operations bottom line. (I’ve never met a farmer that didn’t make long term investments in his/her operation) PV systems eventually lead to “free power” after they pay for themselves and a typical system can last 25 to 30 years. With current incentive programs, PV systems are more affordable than ever which leads to quicker payoffs.  This means a short period of time until the system actually starts providing free power to your agribusiness or farm enterprise. In some cases we are talking about 4 to 6 year pay offs. 
Depending on the overall cost of your system, due to your needs, and depending on the some interesting incentives programs, PV has become relatively cheap.  Part of what contributes to the “cheapness equation” is your local power costs.  These have been historically low in the US, but as we know from last year’s fuel prices, the US really isn’t in control of our energy costs.  Much of the power generated in the US is created by burning fossil fuels that we buy from foreign nations. 
USDA Grants REAP Rewards
If you are contemplating a similar alternative renewable energy system installation for your farm or ranch, you should know that the Rural Development division of the USDA is currently accepting applications for grant money and guaranteed loans under programs called REAP/RES/EEI. (Rural Energy For America Program Grants/Renewable Energy Systems/Energy Efficiency Improvement Program) The deadline is July 31 2009, so you’re going to have to get moving on this one.
According to the USDA, “REAP/RES/EEI Grants Program will provide grants for energy audits and renewable energy development assistance. It also provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements.”

How much are the REAP grants?
The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Grant requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered. At least 20% of the grant funds awarded must be for grants of $20,000 or less.

Who is eligible?
The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply. Rural electric cooperatives may also be eligible to apply.

What kinds of projects are eligible?
Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation, or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel.

For all projects, the system must be located in a rural area, must be technically feasible, and must be owned by the applicant.

How does the B&I Guaranteed Loan Program compare to the Rural Energy for America Program Guaranteed Loan and Grant?

Click here for a handy chart.

How Can I Apply
To apply for funding for the REAP Grant Program, please contact your Rural Development State Office.

Combined Incentives = Big Savings
Combine the REAP program with other existing federal incentives and state programs (state programs vary) and you might just get a system for pennies on the dollar. As a result of the recent stimulus legislation, there is currently a 30% federal incentive which can be taken as a tax credit or in a cash rebate form.  The rebate is to be paid by the Treasury within 60 days of the date on which the solar equipment is installed or the date the owner submits an application, whichever is later. Installation must occur prior to 2011. -If you haven’t looked at solar in a while, this is a big new change! There are also interesting equipment depreciation benefits. Also, be sure to check with your state government to see what they are offering.  Many states are racing right now to be called the “greenest” and are coming out with some substantial buyer’s incentive programs
 In the case I am working on, the Fed is providing for 30%, the state is providing 35% and IF the REAP incentives are granted (questionable in our case) the rancher will receive an additional 25% incentive which combines to a total of 90% off the purchase and installation price.  Wow!

•   For more information on the REAP program, contact your local Energy Coordinator
•   For more information on State Programs visit http://www.dsireusa.org
•   For more information on Federal Programs visit http://www.energy.gov/taxbreaks.htm  

I rarely write about other blogs, but I read one the other day that I thought you might find interesting.  In a piece called “Grain, Guns and Government: Untying the New Deal Knot,” RFD America discusses a short history of how the USDA/Fed has used interstate laws against farmers in the past, and how the state of Montana is now taking steps now that might help those in agriculture communities that do not wish to implant RFID tags in their animals and livestock. Check out: http://rfdamerica.com/?p=1117

Here are a few paragraphs from the future farmer book I am working on.  This part is from a section that discusses alternative enterprise opportunities that you could consider for your farm.  Enjoy!

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"Closely related to the concept of “eco-tourism,” agri-tourism is defined by the University of California's Small Farm Center as “a commercial enterprise at a working farm, ranch, or agricultural plant conducted for the enjoyment of visitors that generates supplemental income for the owner.”

Agri-tourism can take numerous forms, ranging from simple roadside stands and wine tastings to full-blown 1-2 week seminars during which guests actually put on their rubber boots and overalls, pick up hoes and rakes and learn about farm operations first hand – paying for the opportunity of course. (Such programs may also offer college or university credit.)

It's not all work, of course; although there are some tourists who are willing to get their hands dirty for the sake of greater knowledge and understanding of the origins of food, most want what most tourists want – entertainment, recreation, fun, relaxation and good food and drink (and lots of it).

Fortunately, there are ways to integrate all of these into the operation of a small farm, increasing its profitability.

Forward to the Past - Again

Many elements of “agri-tourism” are not new. Roadside fruit and vegetable stands have long been a fixture of the nation's rural highways, and city “farmer's markets” have become increasingly popular over the past few decades. These are frequently the subject of articles in publications such as Sunset and Journeys (a magazine put out by the American Automobile Association for its members).

Farmers' markets and roadside stands benefit both food producer and consumer, largely because the “middleman” has been eliminated. It allows the farmer to get a better price for his/her produce, while the consumer is getting food that is fresher and closer to its source. It can also be an educational experience, as farmer and consumer get an opportunity to interact first-hand. (Better-buying experience /whole foods)

The U-Pick Phenomenon

The “U-Pick” farm is not a new institution, either – and also offers many advantages, the most obvious of which is the elimination of labor costs as well as the middleman. Customers come and pick their own produce straight out of the field. This produce still commands prices comparable to those charged at traditional retail outlets. The difference of course is that the farmer now pockets the entire amount instead of giving half (or more) to the rest of the distribution chain.

There are downsides to U-Pick. We’ll examine some of those in a later section on matching your choices as a farmer to your choices as a person. And depending on your location, the amount of traffic you might reasonably generate for your U-Pick operation may limit its scope. But for the right farm, a U-Pick operation can relieve harvest of much of its physical burden and improve margins without a major capital investment.

B&B, R&R

The “bed and breakfast” is not a new institution either, but has grown in popularity over the past twenty years as an alternative to commercial/corporate chain motels and hotels. Often located in a home or building of historical significance, B&Bs offer not only a great deal of charm and intimacy that is lacking at the Marriott or Hilton, but offers guests a opportunity to make new friends and acquaintances in an intimate setting as well.

Another appeal to the farm-based bed and breakfast institution is the food, literally “straight off the farm.” This is a golden opportunity to showcase your farm's products – which can also be marketed to your guests directly. (At least one farm located just east of Seattle, Washington did a thriving business offering gourmet meals to guests featuring herbs, spices and produce grown right there on the premises, and its successor is still one of the top dining spots in the Puget Sound area. We'll take a closer look at this operation later on.)

Depending on the land upon which your farm sits and what the local environment has to offer, you might also offer campsites, opportunities for hunting and fishing, off-road biking, horseback riding and day hikes. As crowded national park facilities continue to deteriorate, family-owned farms and ranches offer an attractive alternative.

Such operations can conceivably have something to offer year 'round; if your farm is located a region with four distinct seasons, such as New England, the Rocky Mountains or the inland Northwest, you could be offering cross-country skiing, sleigh rides, and other types of seasonal recreation even when the rest of the farm is shut down by the weather."